Yes, they are making a third one. The only info I found on this was they're calling it
CHEATING DEATH: FINAL DESTINATION 3, set for release January 6, 2006.
Synopsis: "The smallest things can kill you... Pizza crust, running on the treadmill, riding a roller coaster..."
And the continuing saga of the possessed house and its inhabitants who made Sarah Michelle Gellar go insane is back.
The
GRUDGE 2 is set for release October 20, 2006.
Synopsis: "The deadly curse introduced in The Grudge continues to manifest itself."
Director: Takashi Shimizu
Columbia Pictures
Producer(s)

oug Davison, Taka Ichise, Roy Lee, Robert G. Tapert
Credit
www.tribute.ca
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I've seen both film franchises and actually preferred FD2 as it brought everything around full circle. Wonder what they're going to do now. As for The Grudge, well I saw it and honestly didn't like it. It was OK for a scare for the first few minutes, then got tired as the film went on. From my understanding the original Japanese version was far more scarier than its North American counterpart. Who knows?